SC acquits ex-PEA execs, private contractor of overprice in Macapagal boulevard project

By Joel R. San Juan @jrsanjuan1573

THE Supreme Court (SC) has acquitted the former board members of the Public Estates Authority (now Philippine Reclamation Authority) and a private contractor of graft charges filed against them in connection with the alleged P532-million overpriced construction of the President Diosdado Macapagal Boulevard (PDMB) in Pasay and Parañaque Cities, which was opened to the public in 2022.

In a 69-page decision penned by Associate Justice Jhosep Lopez, the Court’s Second Division reversed and set aside the September 16, 2015 decision issued by the Sandiganbayan, which found the petitioners Cristina Amposta-Mortel, Theron Victor Lacson, Leo Padilla, Manuel Berifia Jr., Jaime Millan, Bernardo Viray, Raphael Pocholo Zorilla, Daniel Dayan, Frisco Francisco San Juan, Elpidio Damaso, Carmelita D. Chan, and contractor Jesusito Legaspi guilty of violating the provisions of Republic Act 3019 or the Anti-Graft and Corrupt Practices Act and sentenced them to a maximum of eight years in prison.

The Court even praised the timely completion of the project, saying that this has benefited the government with “the increase in value of the land surrounding the area, as well as the public who continue to reap the benefits of having alternate routes that would let them avoid traffic congestion.”

Bulk of the DPWH’s CC funding would go to its flood management program with an allotment of P215.6 billion for the construction of new and rehabilitation of existing flood mitigation structures along major and principal rivers, according to the budget documents.

The NEP showed that the Marcos administration is allocating P2.5 billion next year for the National Green Program that would rehabilitate about 31,992 hectares of forestlands, among others.

The administration is also bankrolling a P1-billion budget to protect the country’s natural habitats and conserve biodiversity and another P2 billion for its Green, Green, Green program that seeks to improve and develop green open spaces, such as parks, and to construct bicycle lanes, racks, among others.

The Manila Bay Rehabilitation project would receive a P1.5 billion budget “to clean all esteros and waterways connected to it,” Marcos said.

The other projects and programs under the CC spending next year are: Clean Air Program (P181 million), Clean Water Program (P198 million), Solid Waste Management Program (P261 million), and Coastal and Marine Resources Management Program (P217 million).

“To climate-proof the Philippines, the National Disaster Risk Reduction and Management Fund amounts to P31 billion to fund the reconstruction, rehabilitation, repair, aid and relief services to communities or areas affected by both natural and man-made activities,” Marcos said.

The Sandiganbayan, in the same ruling, also held the members of the old PEA board and the PEA management civilly liable in the amount of P173.44 million for the supposed irregularities that accompanied the construction of the PDMB project.

It also declared construction firm JD Legaspi civilly liable in the amount of P57.5 million for the construction of the Seaside Drive Extension, which was not part of the original contract for PDMB project.

The Sandiganbayan ruled that the accused violated the simplified bidding rules because they shortlisted bidders not based on the Philippine Contractors Accreditation Board (PCAB) masterlist.

It also held that the accused conducted the bidding and recommended the award to JD Legaspi without detailed engineering in violation of ection 2 of Presidential Decree 1594 and without the required appropriation and actual availability of funds for the total contract price.

Section 2 of PD No. 1594 requires that detailed engineering be carried out before any bidding or contract is awarded for a construction project.

In acquitting the old PEA board members and Legaspi, the SC noted the findings of the Commission on Audit (COA) that there was no overpricing in the implementation of the said project.

“Considering that the COA, the constitutionally

9 reservist battalions now being readied for ‘territorial defense’

NINE Ready Reserve Battalions affiliated with the Nueva Ecija-based 7th Infantry Division are now transitioning towards socalled “territorial defense” missions.

This was emphasized by 7th Infantry Division (ID) commander Maj. Gen. Andrew Costelo as the unit celebrated its 35th founding anniversary at Fort Magsaysay, Palayan City, Nueva Ecija on Monday, August 1.

“The 7ID is transitioning to territorial defense. We shall utilize both our regular and reserve forces that have proven to be solid pillars of our country’s defense. We are strengthening their interoperability, enhancing their capability to supplement each other’s strengths,” he added.

Costelo also said this shift to territorial defense is due to the 7ID’s success in counter-insurgency operations.

He also added that reservists from the nine Ready Reserve Infantry Battalions have undergone “personnel leadership enhancement program” as a capacity-building measure for their commanders and senior staff.

THE death toll caused by the combined effects of the southwest monsoon and typhoon “Egay” has reached 27, with the affected families now at 765,024 families, the National Disaster Risk Reduction and Management Council (NDRRMC) reported in its Wednesday update. Of the reported death toll, only two are confirmed so far and these were reported in Calabarzon and Region 1.

The 25 reported fatalities are still undergoing validation, the NDRRMC, and these deaths can be broken down into 12 for the Cordillera Administrative Region (CAR), eight for Region 1, three for Calabarzon, and one each for Region 6, and 11.

The agency said these figures could still change pending validation or confirmation.

Meanwhile, it said that the 765,024 families, which is equivalent to 2,856,962 individuals, are residing in 4,646 barangays in 13 regions of the country.

As of this writing, the NDRRMC said 677 evacuation centers are in operation and these are now assisting 15,604 families, which is equivalent to 57,740 persons.

Meanwhile, another 57,609 families or 231,973 individuals are being aided outside. Rex Anthony Naval

Costelo said the program would improve their ability to operate in conjunction with the regular force.

He also lauded the participation of Reserve Officer Training Corps commanders in leadership programs and educational and capability enhancement tours where they were able to interact with Army aviators and Army elite units.

Meanwhile, Armed Forces of the Philippines (AFP) chief Gen. Romeo Brawner Jr., who was the guest of honor and speaker at the 7ID’s 35th anniversary, lauded the unit for being a “showcase unit of the Philippine Army in its engagements with allied and partner nations.”

“As we transition from internal security operations to territorial defense, I commend your aptitude in integrating different assigned forces during peace and conflict. I am happy to see all of the developments, the new establishments and innovations,” he added. Rex Anthony Naval bound auditor of government funds, declared that no overpricing occurred, such findings should be given considerable weight,” the SC said.

“This further shows that no injury was proven to have been caused to the government; neither any manifest partiality in favor of a party was given. As part of the elements of violation of RA No. 3019, failure to prove these would be tantamount to a failure to prove violation of the law, beyond reasonable doubt,” it added.

The Court also agreed with the contention of the petitioners that they had to rely on the list of contractors provided by the Department of Public Works and Highways (DPWH) since the PCAB master list was not yet available then.

“Nowhere from the evidence presented by the prosecution was it shown that JD Legaspi or any of the bidders was unqualified or had no competence to undertake the PDMB project because the PEA relied on the DPWH list,” the Court pointed out.

On the contrary, the SC noted that JD Legaspi, as the winning bidder, was able to perform his part of the contract.

“The circumstances that led to PEA’s action in utilizing the DPWH therefore negates the presence of manifest partiality, evident bad faith or gross inexcusable negligence under Section 3[e] of RA No. 3019,” the SC explained.

Furthermore, the SC said a violation of Section 2 of PD No. 1594, “without clear showing of bad faith, malice, or gross negligence,” cannot be automatically equated to violation of the anti-graft law.

“At the most, the absence of a detailed engineering could affect the budget or cost for which the government must spend for the completion of the project. Overpricing should, however, be proven to have been committed with deliberate corrupt ways before one can be indicted for violation of RA No. 3019,” the SC said.

“In this case, the Special Audit Report of the COA found that there was no overpricing in the portion of the contract awarded to JD Legaspi,” it added.

Likewise, contrary to the findings of the Sandiganbayan, the SC said the condition for presidential approval on extra works and price adjustments for the PDMB project was met, subject to certain conditions.

The Court also ruled that the construction of the Seaside Drive Extension, even without presidential approval, can’t be used as basis in holding the petitioners liable for graft without proof of bad faith or gross inexcusable negligence.

The SC noted that the Seaside Drive Extension was constructed at a portion of the PDMB in order to have a road that will connect it to the Roxas Boulevard and serve as a link to the other roads going to and from the PDMB.

“With a legal basis for which the actions taken by petitioners were anchored, it cannot be said that their actions were coupled with a clear inclination to favor another or that a conscious wrongdoing, ill will or dishonest purpose was being committed,” the SC pointed out.

As a consequence of the acquittal of the petitioners, the Court also deleted the civil liability imposed by the Sandigabayan against them.

It can be recalled that in 1995 then President Fidel Ramos initiated the Boulevard 2000 Framework Plan to address the problem of flooding in the area, alleviate traffic congestion along Roxas Boulevard, and link the reclamation with circumferential and radial road system of Metro Manila.

The PEA Board in 1998 approved the construction of the road project as well as the P1 billion loan facility in the form of convertible notes to finance the same.

In October 2002, Sulficio Tagud, a former member of the PEA Board filed a complaintaffidavit with the Ombudsman against the officers and members of the 2001-2002 board directors and other accused who were allegedly behind the anomalous contract.

In 2003, the Ombudsman issued a resolution dismissing the plunder charge for insufficiency of evidence, but found probable cause and recommended the filing of an Information for violation of Sec. 3 (e) of Republic Act No. 3019 (Anti-Graft and Corrupt Practices Act).

The Ombudsman alleged that the said public officials gave unwarranted benefits, advantage, and preference to accused Legaspi by bidding out the project and illegally awarding the same to the latter despite the lack of compliance with the mandatory requirements and procedure for bidding, even if no funds are yet available to finance the project.

The Ombudsman also averred that it caused the allowance and payment of several claims of JD Legaspi amounting to an unlawful overprice of more than P532 million.